If cynics are to be believed then business is all about selling pack of lies but the truth is that no matter what kind of business you engage in, be it a billion-dollar deal or a second hand car trade – truth is what matters.
With this being a major premise in any market success story, let’s look at what is currently happening based on the US elections. Investors are investing huge money into stock markets based on the fact that Trump and his promises are true. If Trump and his promises do not turn out true, then the investors are in for one big disappointment.
As is evident from almost infinite sources, the new President has an uncanny nature to dabble in falsehood. Unfortunately, with the media spending hours providing credibility to Trump’s stories or statements, it can become difficult to signal to the public when he speaks misinformation. As the saying goes, “The horse is out of the barn on this one”.
With governments deciding what is true and not, business information becomes completely unreliable. At present US seems headed in the same direction with scandals probably getting dismissed as fake news, climate change called hoax, vaccination being touted as root cause of diseases – all against mountains of evidence to the contrary.
All this is in tandem with Trump’s in-your-face denial attitude after having committed something on camera like mocking a disabled reporter on video and then denying the same.
So yes maybe, just maybe the economy is headed into some tough times because when truth and lies can be manipulated business topple and with it so do markets.